- Yen recovering ground as US-North Korea tensions persist.
- USD/JPY looks to hold the 109 handle amid firmer DXY, Treasury yields.
The USD/JPY pair turned positive for the first time in four trading sessions and bounced sharply to test the 109.75 region, before reversing towards the midpoint of the 109 handle, where it now wavers.
The Yen slipped from two-week highs versus its American counterpart earlier today after a bout of risk-recovery was witnessed, as tensions between the US and North Korea appeared easing, with the North saying that it’s still open to resolving issues with the US. On Thursday, the US President Trump called off a June summit with the North Korean leader, Kim Jong Un, re-igniting geopolitical tensions.
However, markets still remain cautious amid ongoing worries over global politics, with the safe-haven bids for the Yen likely to be underpinned across the board. Hence, the Japanese benchmark index, the Nikkei 225 index, is also seen paring back gains to now trade modestly flat around 22,460 levels.
Meanwhile, the downside appears limited amid broad-based US dollar strength and positive tone seen around Treasury yields, as the focus shifts towards the US durable goods, revised UoM consumer sentiment data and Fed Chair Powell’s speech for fresh trading impetus.
USD/JPY Technical Levels
Omkar Godbole, FXStreet’s Analyst, writes: “The pair has found acceptance below the key ascending trendline and the 200-day moving average. The 14-day relative strength index (RSI) dipped below 50.00 (in the bearish territory) yesterday. The 5-day MA has rolled over in favor of the bears. The chart also shows a 5, 10-day MA bearish crossover and 5, 200-day MA bearish crossover.“
“Thus, the pair looks set to test immediate support at 108.81 - 38.2% Fib R of 104.63-111.40 and could possibly drop further to 108.64. A daily close below 108.64 would confirm a bullish-to-bearish trend change. On the higher side, only a daily close above the 200-day MA of 110.18 would abort the bearish view,” Omkar adds.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds above 155.50 ahead of BoJ policy announcement
USD/JPY is trading tightly above 155.50, off multi-year highs ahead of the BoJ policy announcement. The Yen draws support from higher Japanese bond yields even as the Tokyo CPI inflation cooled more than expected.
AUD/USD extends gains toward 0.6550 after Australian PPI data
AUD/USD is extending gains toward 0.6550 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.